Sonic Automotive, Inc. (NYSE:SAH)

Automotive retailer with dealership franchises that provide: sale of new and used cars and light trucks, sale of replacement parts and performance of vehicle maintenance, warranty, paint and repair services; and arrangement of extended warranty contracts.

I am very familiar with this company, and will continue to ride the upswing! Bought 30k shares at a little over a buck in 08, (the same day Paul Rusnak of Rusnak Automotive bought FOUR MILLION shares!) and sold them at a 10. Bought back in much smaller position at 11.10 and am sitting on a two bagger as I write this. BUT BE CAREFUL! This Company is run as the Smith Family's personal Fiefdom...

Has the auto industry in all it's facets passed through what has been described as "automotive Armageddon?" If so, Sonic ought to rise. It has addressed it's large amount of debt and seems headed for some sustained profitability, as a UBS analyst has pointed out

terrific first quarter, outperformed their sector, debt to be restructured...77cents a few weeks ago...$4.74 as a high today....this company is becoming very lean and will exit this poor business climate in better shape than any other public group

Sonic has mismanaged many dealerships. They continue to purchase more assets to build revenue, however they are falling out of favor with the manufacturers and have recently commenced litagation against Mercedes Benz. A very poorly managed corporation, in a vehicle market that is shrinking. A bad buy, and for most that purchased a poor sell.

The auto industry in general is faltering of late, and does not look to be improving anytime soon. For now, I am short on this stock as its financials have not looked that impressive and it's cash flow has only been leveraged by a greater glut of borrowing.